During your supply chain job search, it’s helpful to know the latest salary trends as those will help determine a major portion of your negotiation, or even if pursuing a potential opportunity is worth your time and energy. A supply chain recruiter will provide some of the information but as a professional in the industry, any research will prove to be valuable.
A recent survey by Material Handling & Logistics has revealed the typical supply chain manager earns slightly less than $100,000.
The MH&L survey added that there is still significant room for salary growth, and average pay rate should increase as companies increasingly realize the value of having talented individuals in their supply chain.
The survey researchers divided respondents into 20 verticals. The highest paying supply chain verticals according to the survey, were construction equipment (an average of nearly $148,000), metal goods ($135,000), retail/trade ($135,000), and aerospace & defense ($125,000). If you’re considering changing industries to increase your income as a supply chain manager, the metals vertical may have some of the most opportunities, as the largest portion of all respondents were from that industry.
The lowest-paying verticals were plastics & rubber products ($65,000), third-party logistics ($75,000), consulting/education ($75,000), and printing/publishing ($80,000).
The survey also found the biggest fraction of their respondents live and work in the Midwest – 33 percent. MH&L said the relatively low-cost of living in the Midwest could account for why the lowest average salary ($90,000) was in that region. The survey found the highest average salary in the Pacific region ($120,000), which accounted for 10 percent of the industry. Unsurprisingly, the highest average salaries in the supply chain industry went to corporate executives ($145,000). Supply chain directors/managers made an average salary of nearly $135,000, followed by fleet managers at $120,000. Inventory/ materials supervisors tended to earn the least, with an average salary of just over $68,000, with procurement managers earning somewhat more at just over $69,000.
As in other industries, the most educated supply chain professionals had the highest average salaries. Managers with a high school diploma are getting paid just more than $73,000, on average, while those with a master’s degree or more education are averaging more than $120,000. By comparison, those just getting into the supply chain industry with less than two years of experience, are earning $59,000, while those with greater than 40 years of experience are averaging $126,000.
The survey also asked respondents how happy they are with their career in the supply chain, and 79 percent said they were either somewhat or very satisfied – up 5 percent from the year before. When MH&L surveys asked supply chain managers how happy they are with their job, 73 percent said they were either satisfied or very satisfied, up 2 percent from the previous year.
Taken together, both of these responses indicate there’s never been a better time to get into the supply chain industry, and yet respondents also said there is a severe lack of interest in the field from the millennial generation. The result is an industry that appears to have a desperate need for an infusion of young talent.